Trudging to the office is so … 20th century. These days, anyone can work from anywhere. And working from home is key to maintaining productivity during the coronavirus crisis. But these technological advances carry huge risks for your payroll operations when employees work across state lines – even on a temporary, emergency or travel basis.
Why? Employees who work remotely (even once in a while) can unintentionally trigger payroll obligations in states near and far from your corporate offices. Likewise, employees who travel often leave behind a trail of tax liabilities for them … and you. And, in addition to payroll obligations, you could face corporate, excise and unemployment taxes, too.
Even worse: States are making a big push to tax nonresidents, especially nonresident employers who have employees in their states. It's easy money for state treasuries – and a surprise liability for you!
Don't get caught unprepared and out of compliance.